Steamship Authority plans rate hike next year

Steamship Authority management has proposed rate hikes on both the Nantucket and Martha's Vineyard runs next year, including $10 increases in vehicle fares on the Nantucket run.

Joshua Balling

Faced with rising costs across the board, Steamship Authority management has proposed rate hikes on both the Nantucket and Martha's Vineyard runs for next year, including $10 increases in vehicle fares – one-way and excursion – on the Nantucket run.

The SSA is projecting $78.4 million in operating expenses next year, up $2.4 million – 3.1 percent – from this year, on estimated revenues of $81.3 million, leaving the boat line with an uncomfortably low surplus in expected net revenue to cover debt service and other costs.

While the SSA did see increased ridership through the end of August this year, the proposed rate hikes are being driven in large part by projected increases in fuel costs and maintenance expenses, pension and payroll, SSA comptroller and treasurer Bob Davis said.

The proposed fare increases are expected to add $2.55 million to the budget, bumping net revenue to $83.9 million, providing a much more comfortable $3.4 million “cushion,” SSA officials said.

The SSA board of governors is expected to vote on the proposed budget and rate hikes at its October meeting in Woods Hole. If approved, the new fares would take effect Jan. 1, 2011.

Based on the allocation of next year's projected revenues and cost of service, the Nantucket run would assume $1.5 million of the projected rate hikes, with Martha's Vineyard charged the remaining $1.05 million.